Education
If you rent out a property in Italy—even occasionally through platforms like Airbnb or Booking.com—you may be subject to a 21% withholding tax on your rental income. This tax is part of a regulatory framework designed to ensure tax compliance among short-term rental hosts, both resident and non-resident.
But what does this 21% withholding really mean for your tax obligations? And how does it relate to your annual Italian tax return (Modello Redditi or Modello 730)? Here’s what property owners need to know in 2025.
The 21% withholding tax (ritenuta d'acconto del 21%) is a flat-rate tax applied to gross rental income earned from short-term leases—typically defined as stays of up to 30 days. The tax is withheld at the source by intermediaries, such as:
This means that when a guest books your property, 21% of the rental income is automatically retained by the platform or agent and sent directly to the Agenzia delle Entrate (the Italian Revenue Agency).
This withholding tax applies to:
If you list your property on Airbnb, Booking.com, or any other platform acting as a “qualified intermediary,” you will likely be subject to the withholding unless you have opted for a different tax treatment (explained below).
Many foreign property owners mistakenly believe the 21% withholding is the final tax they owe. This is only partially correct, depending on your individual tax situation.
There are two primary tax regimes for rental income in Italy:
Non-residents—especially Americans—often have a tax treaty with Italy (like the Italy-U.S. tax treaty) that can impact how your rental income is taxed. However, regardless of treaty benefits, you are generally still required to:
Failing to file a return can result in penalties—even if tax was already withheld.
Platforms like ItalianTaxes.com offer expert guidance and bilingual support for foreign property owners who need to file Italian tax returns, ensure compliance, and understand their cross-border tax obligations.
The 21% withholding tax is a flat-rate tax applied to short-term rental income earned in Italy. It is withheld by platforms like Airbnb and Booking.com and remitted to the Italian tax authority (Agenzia delle Entrate) on behalf of the property owner.
No. It specifically applies to short-term leases (up to 30 days) where hospitality services are not provided, and the booking is managed by an intermediary (e.g., Airbnb, Booking.com, or a local agent).
It depends.
If you opt for the Cedolare Secca flat-tax regime, the 21% withholding generally satisfies your tax obligation. If you are under the ordinary tax regime, the withholding is considered an advance, and you must reconcile your taxes via your annual return.
Yes. Even if tax was withheld, non-residents and residents alike must file an Italian tax return (usually Modello Redditi) to report rental income and confirm the correct tax treatment.
If the platform or intermediary does not apply the 21% withholding, you are personally responsible for paying the tax and reporting the income in your Italian tax return. Failing to do so can result in penalties and interest.
Yes, non-residents can generally opt for Cedolare Secca on rental income, provided the lease qualifies. You must declare this in your Italian tax return. Treaty benefits (such as the Italy–U.S. tax treaty) do not override your obligation to file.
If you rent directly—without using a platform or intermediary—you must:
You should retain:
You can consult a local commercialista (Italian tax advisor) or use trusted online platforms like ItalianTaxes.com, which offers expert support in English for non-resident property owners.
From income reporting and local tax compliance to legal documentation and payment workflows — we’re building the first truly connected platform for non-resident property owners. No fragmented tools, no language barriers — everything in one place, for Italian taxes, in plain English.
